Is ITIN Required for Buying a Car in the United States
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Can you purchase a car in the United States with your ITIN number or is it even required? The answer to this question depends, and the outcome might be uplifting or disappointing.
First and foremost, you must provide an identification number to the seller so that it goes into the IRS records. The Internal Revenue Service requires car dealerships and individuals to report the sale of a vehicle that exceeds $10,000. That said, you must provide some sort of documents that verify your identity.
If you don’t have a Social Security Number, this might seem tough but it isn’t. As long as you have enough money to purchase the vehicle, your Individual Taxpayer Identification Number will be enough to buy it.
Getting Car Loans With ITIN
As for whether or not you can get an auto loan with your ITIN, this gets quite complicated. Most lenders will ask you for a Social Security Number – even to start the application process. IF you don’t have an SSN, you won’t be able to apply for the loan. But, this isn’t the case with some lenders. There are plenty of lenders that will happily give you a car loan as long as you show proof of steady income.
The reason why you aren’t able to get a car loan in the United States with your Individual Taxpayer Identification Number is the lenders see you riskier than US citizens and resident aliens., especially if you don’t have a credit score. You need to look at the lender’s point of view in these kinds of situations before you think it’s unfair.
Since most lenders won’t give you a loan when you don’t have a Social Security Number, the ones that will give you a commercial car loan might have higher interest rates. These are very common with these types of lenders as they are taking a higher risk by lending you a car loan when you aren’t a resident alien, yet.
Can I use my tax ID to get a mortgage?
Yes. You can use your ITIN to apply for a mortgage. Those who are not residents yet can use ITIN to apply for a home loan. You can even apply for FHA or VA loans. The Federal Housing Administration also welcomes those who are not yet US resident aliens, holding only tax ID.
How can I apply for ITIN?
There are multiple ways to apply for ITIN, the easiest and the convenient way being applying in-person at the local IRS office. Make an appointment with the nearest Taxpayer Assistance Center to apply, and get your ITIN, known as Tax ID. You can also apply for ITIN through filing Form W-7 or visiting a certifying acceptance agent. If you have time, go to your appointment at the IRS office as the certifying acceptance agents charge you fees, and waiting for the response for Form W-7 and mailing foreign status documents can be quite annoying
Can I get credit cards with ITIN?
Yes. The same way as applying for any type of loan in the United States, you can use ITIN to apply for a credit card. If you don’t have a credit score yet, get a secured credit card to establish and improve your credit score to qualify for better ones that offer cash back and rewards.
What’s the difference between Social Security Number and ITIN?
The main difference between the Social Security Number and Individual Taxpayer Identification Number is citizens and resident aliens (green card holders) automatically get a Social Security Number, whereas those who earn income in the United States but don’t or can’t have an apply SSN use ITIN to handle tax obligations. ITINs are in the same format as an SSN but starts with the number “9” (nine).
